Residential Lease Agreement: A Basic Guide

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A residential lease agreement, sometimes referred to as a lease or rental agreement, is a legal contract a tenant and landlord sign when a tenant decides to rent a residential property. It outlines the terms and conditions of the tenancy, including the obligations and rights of the tenant and landlord. Tenants and landlords can use residential lease agreements for a variety of residential properties, including townhouses, duplexes, condos, houses, apartments, and more.

What Are the Landlord's and Tenant's Obligations in a Residential Lease Agreement?

The landlord's most important obligations in a residential lease agreement include:

On the other hand, the tenant's most important obligations in a lease agreement include:

What Does a Residential Lease Agreement Include?

The clauses included in a residential lease agreement vary depending on whether it is a standard residential lease agreement or a comprehensive lease agreement. A standard residential lease agreement typically includes the following:

In addition to the clauses in a standard residential lease agreement, a comprehensive residential lease agreement can specify whether or not the property is furnished, appoint a property manager who acts on behalf of the landlord, and state whether or not the tenant can operate a home business on the premises. This type of residential lease agreement also allows the landlord to include a pet fee or deposit and includes information about a guarantor or surety. A guarantor is someone, such as the tenant's parent or close friend, who agrees to pay the rent if the tenant defaults on rent.

Here's an article that shares a few other essential clauses in a residential lease agreement.

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Who Can Live in the Property Under a Residential Lease Agreement?

Only the tenant and the people listed as occupants can live in the property. The difference between a tenant and an occupant is that a tenant is a person who signs a lease agreement, while an occupant is a person who lives in the property with a landlord's permission but doesn't have the same obligations and rights as a tenant. For example, an occupant is not legally required to contribute to a security deposit or pay rent but a tenant would.

Occupants can be both children and adults. Children adopted or born while the tenant lives in the property are automatically listed to lease as occupants. However, any state may limit the number of occupants/tenants in the property if that number violates safety or health regulations for housing. These regulations vary from one state to another.

Does a Residential Lease Agreement Have to be Notarized?

A residential lease agreement doesn't have to be notarized because a lease is usually considered a short-term contract. Lease terms are usually month to month, six months, or one year in length.

Some states consider leases that exceed one year to be long-term leases. In this case, the residential lease agreement has to be notarized. It doesn't usually cost much money to notarize a residential lease agreement.

If you want to learn more about how much you can expect to pay in notary fees, head to this article .

What Happens When a Residential Lease Agreement Ends?

If a tenant chooses a periodic term lease, the lease will automatically renew with the same terms and conditions as the initial lease, unless the landlord made some changes using the required notice period. Even after the initial lease period, notice from either the landlord or the tenant is required to end the lease agreement.

If a tenant chooses a fixed-term lease, however, the lease agreement between the tenant and landlord may continue if both parties agree. In some states, a fixed residential lease automatically becomes a periodic term residential lease. In other states, the fixed-term lease may become a "tenancy at sufferance" or a "tenancy at will" when it ends, which only lasts as long as the tenant and landlord want it to. This type of residential lease term usually occurs after an expired residential lease agreement and doesn't have as much legal protection as an unexpired residential lease.

If a tenant decides to terminate all rights under a fixed-term residential lease agreement as soon as it expires, they should serve notice before the end of the lease term, in accordance with their local requirements.

Residential lease agreement

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What Happens If a Tenant Decides to End a Fixed-Term Tenancy?

If a tenant agreed to a fixed-term tenancy, they have to pay the rent during that period. If the tenant leaves the property before the term of the contract ends, they're still responsible to pay the rent for the entire length of the lease. However, if the landlord is able to re-rent the property before the end of the lease of the breaching tenant, they may no longer require the breaching tenant to pay rent. Landlords are not allowed to collect double rent, even if the previous tenant has left.

What Happens If a Tenant Violates a Term of the Residential Lease Agreement?

If the tenant breaches a term of the residential lease agreement, they're responsible for correcting it. This may involve paying money to repair any damages that the tenant or their guests may have caused. If they don't voluntarily pay to correct the breach, such as making a payment or repair, they can be evicted by the landlord or possibly face a lawsuit for damages sustained as a result of the breach.

If you are a landlord preparing to lease residential property, a residential lease agreement can provide important protections. When you are drafting a residential lease agreement, consult with a lawyer to make sure your document includes all necessary aspects.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

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www.linkedin/in/michaelbmiller I am an experienced contracts professional having practiced nearly 3 decades in the areas of corporate, mergers and acquisitions, technology, start-up, intellectual property, real estate, employment law as well as informal dispute resolution. I enjoy providing a cost effective, high quality, timely solution with patience and empathy regarding client needs. I graduated from NYU Law School and attended Rutgers College and the London School of Economics as an undergraduate. I have worked at top Wall Street firms, top regional firms and have long term experience in my own practice. I would welcome the opportunity to be of service to you as a trusted fiduciary. In 2022 and 2023, I was the top ranked attorney on the Contract Counsel site based upon number of clients, quality of work and number of 5 Star reviews.

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Residential Lease Agreement

Asked on Mar 8, 2022

What are the laws for subletting a bedroom in 2 bhk appartment without landlord consent in Illinois?

I wanted to sublet my apartment without landlord consent, since my lease with this landlord doesn't allow sublease, May I know if there is any possible way to make this bedroom sublet without landlord agreement. My city is Peoria, Illinois

T. Phillip B.

Answered Apr 15, 2022

If your lease doesn't allow a sublease, you can't do it. I'd just approach the landlord and see what could be done. If the person moving in would be willing to sign a one-year lease and do the typical background check, the landlord may let you out of your lease.

Residential Lease Agreement

Asked on Sep 13, 2023

Renewal clauses in a residential lease agreement?

I am a tenant in a residential lease agreement and I recently received a renewal offer from my landlord. I am concerned that the renewal clause may not be in line with state law and would like to know what rights I have as a tenant in this situation. I would like to understand more about the renewal clause and how it applies to my situation.

Sarah S.

Answered Sep 15, 2023

In California, residential rental agreements are governed by a set of laws and regulations designed to protect both landlords and tenants. One crucial aspect of these agreements is the rental renewal clause, which outlines the terms and conditions for extending a lease beyond its initial term. Understanding how rental renewal clauses work under California law is essential for both landlords and tenants to ensure a smooth and legal renting experience. The Basics of Rental Renewal Clauses A rental renewal clause is a provision in a lease agreement that dictates the terms and conditions under which a lease can be extended after its initial term expires. In California, rental renewal clauses are subject to specific regulations to protect the rights of tenants. Here are some key points to keep in mind: Written Notice: Under California law, landlords must provide tenants with written notice of their intent to renew the lease or terminate the tenancy. This notice must be provided within a specific timeframe, usually 30 to 60 days before the current lease expires, depending on the length of the tenancy. Rent Increases: If a landlord intends to increase the rent upon renewal, they must follow the state's rent control laws, which may limit the amount and frequency of rent increases. It's essential for tenants to be aware of their rights regarding rent hikes. Tenant Rights: Tenants have the right to accept or decline a lease renewal. If a tenant decides not to renew the lease, they are generally required to provide written notice within a specified timeframe, typically 30 days before the lease expires. Lease Term: Rental renewal clauses may specify the duration of the renewed lease term. Some may automatically renew for the same term as the initial lease, while others may offer options for shorter or longer renewal periods. Review the Lease Agreement: It's crucial for both landlords and tenants to carefully review their lease agreements to understand the specific terms and conditions related to renewal. Any agreed-upon terms should be clearly documented in the lease. Benefits for Landlords and Tenants Rental renewal clauses can benefit both landlords and tenants in several ways: For Landlords: Provides a mechanism for maintaining a stable and predictable rental income. Allows landlords to retain responsible and reliable tenants for extended periods. Streamlines the leasing process by avoiding frequent turnover. For Tenants: Offers the option to secure a home for an extended period without the risk of eviction. Provides an opportunity to negotiate for more favorable lease terms or rent rates. Helps maintain housing stability, especially in competitive rental markets. Conclusion In California, understanding rental renewal clauses is essential for both landlords and tenants to ensure a fair and legal renting experience. These clauses provide a framework for extending a lease beyond its initial term, but they must adhere to state laws and regulations. Whether you're a landlord or a tenant, knowing your rights and responsibilities regarding rental renewals is crucial for a harmonious and successful landlord-tenant relationship in the Golden State.

Residential Lease Agreement

Asked on Sep 12, 2023

Disputes in a residential lease agreement?

I recently signed a residential lease agreement, and I'm now concerned about potential disputes that may arise during the course of the lease. I want to make sure that I am aware of any potential legal issues that may arise and how I can protect myself in the event of a dispute. I am hoping to get some advice from a lawyer on how best to handle disputes in a residential lease agreement.

Linda W.

Answered Sep 27, 2023

Having already signed a lease agreement. Your options are somewhat limited. Residential leases are for the most part governed by Florida Statutes. There is no specific answer to your question, because it depends on the nature of the dispute.

Residential Lease Agreement

Asked on Sep 10, 2023

Drafting a residential lease agreement?

I am a new landlord looking to start renting out a residential home in the next few months. I need to draft a residential lease agreement that meets the legal requirements of my state and ensures the rights of both myself and the tenant are protected. I am looking for legal advice to make sure I draft a comprehensive and legally compliant lease agreement.

Merry A.

Answered Sep 12, 2023

I am a WA State attorney, and I counsel both landlords and tenants in WA who end up having landlord/tenant conflicts. It would be smart of you to have your first lease draft reviewed by a knowledgeable WA State landlord tenant law attorney. The biggest problems that arise include return of a security deposit and/or billing for additional costs after move out; tenants failure to comply with terms of the lease and/or HOA rules; and issues/questions regarding renewal of the lease. The Residential Landlord Tenant Law can be found here: https://apps.leg.wa.gov/rcw/default.aspx?cite=59.18 Two changes were made in 2023 alone. In addition, some cities, like Seattle, and unincorporated King County, have additional requirements to be aware of. You may want to consider joining an association of WA landlords - I think there's a statewide one, and there may be county or city organizations. Some of these can provide you with first draft leases and/or provide guidance, classes, and counseling. There are many places to buy leases online, but some of these don't address the fine points regarding notice to vacate or raise rent, issues arising from paying last month's rent ahead, whether or not security deposits can be applied toward the last month's rent, and so forth. An attorney who specializes in landlord-tenant law can provide you with your first lease and also be available on an ongoing basis for consultations from time to time.

Residential Lease Agreement

Asked on Sep 10, 2023

What is a residential lease agreement?

I am looking to move to a new apartment and need to know the details of a residential lease agreement. I am familiar with the basics of a lease, but want to make sure I understand all the details of what I am signing. I am also interested in understanding what my rights and responsibilities are as a tenant.

N'kia N.

Answered Sep 24, 2023

A residential lease agreement is sometimes referred to as a "residential rental agreement," a "rental agreement," a "residential lease," a "lease agreement," or simply a "lease." It is a legal contract between a landlord and a tenant that details the terms and conditions of the tenancy, including the rights and responsibilities of each party. Every U.S. state has laws regarding the rights and responsibilities of residential landlords and tenants. For example, North Carolina's "Residential Rental Agreement Act" can be found in Chapter 42 of the North Carolina General Statutes. Generally, a residential tenant has the right to possess (or occupy) the property, the right to quiet (or peaceful) enjoyment of the property, and the right to the property being fit and habitable. In exchange, a residential tenant is responsible for paying a rental fee (in full and when due), not damaging the property, and keeping the property safe and sanitary. However, a residential lease agreement may grant additional rights to and/or impose additional responsibilities upon a tenant, so long as neither conflict with the law. For example, a landlord might provide a tenant access to a business center, a clubhouse, or an exercise room but might charge a fee for said access. For another example, one landlord may prohibit pets, one may allow pets but charge no fee, and another may allow pets and charge a fee. Last, not everything stated in a residential lease agreement is necessarily enforceable. Having an attorney review a lease before signing it can help clarify the rights and responsibilities of the landlord and the tenant, which can also help avoid confusion and conflict later on.